Talanx opened 2026 with a strong improvement in earnings, delivering net income of EUR 774 million for the first quarter, up 28% from EUR 604 million a year earlier. Profitability also strengthened, with the combined ratio improving to 88.7% from 92.8% in Q1 2025, reflecting a far more favourable claims environment.
The group’s first-quarter performance was supported by a sharp reduction in large loss payments and continued resilience across its diversified operations. Operating profit rose 27% to EUR 1.6 billion, return on equity reached 22.3%, and the insurance service result climbed 34% year on year to EUR 1.5 billion, compared with EUR 1.1 billion in the prior-year period.
Revenue and underwriting performance
Talanx reported insurance revenue of EUR 12.1 billion in Q1 2026. While this compares with EUR 12.4 billion in the same quarter last year, the company said revenue was up 3% after adjusting for currency effects. The group also noted that Primary Insurance accounted for 53% of total net income during the quarter.
The improvement in underwriting results was largely driven by a more normalised loss experience. In the first quarter of 2025, results were heavily affected by exceptionally high claims related to the California forest fires. By contrast, large loss payments in Q1 2026 totalled only EUR 289 million, well below both the EUR 881 million recorded a year earlier and the pro rata budget of EUR 676 million.
Large losses and catastrophe events
Of the total large loss payments in the quarter, EUR 205 million came from natural disasters, while EUR 84 million related to man-made losses. The most significant natural catastrophe event was Winter Storm “Fern” in the USA and Canada, which generated losses of EUR 128 million.
Other notable events included Atlantic Storms “Kristin” and “Leonardo” affecting the Iberian Peninsula and Morocco, which cost EUR 34 million, as well as Australian bush fires that added EUR 19 million in losses.
Reinsurance division and balance sheet strength
The Reinsurance Division posted insurance revenue of EUR 6.5 billion in Q1 2026, compared with EUR 7.0 billion a year earlier. Despite the lower revenue figure, its insurance service result recovered strongly to EUR 890 million, up from EUR 515 million in Q1 2025, as prior-year catastrophe-related claims did not repeat at the same scale.
Talanx also highlighted continued balance sheet strengthening. During 2025, the group increased the resilience of its loss reserves by around EUR 1.2 billion, bringing the total to EUR 5.9 billion based on its own estimates.
Outlook for 2026
Chairman of the Board of Management, Torsten Leue, said the company had produced record quarterly net income while improving profitability, despite geopolitical and macroeconomic pressures. He added that Talanx still retains a cushion of nearly EUR 400 million in its large loss budget for the remainder of the year.
Talanx remains confident in achieving its full-year 2026 net income target of around EUR 2.7 billion. According to the group, reaching that goal would allow it to meet and surpass its original 2027 earnings objective one year ahead of schedule, underlining the strength of its diversified business model, decentralised strategy, resilience, and cost leadership.
